State Department's $14.6M IT website maintenance contract awarded to Creative Information Technology, Inc

Contract Overview

Contract Amount: $14,558,539 ($14.6M)

Contractor: Creative Information Technology, Inc.

Awarding Agency: Department of State

Start Date: 2009-09-30

End Date: 2013-06-30

Contract Duration: 1,369 days

Daily Burn Rate: $10.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INFORMATIONAL WEB-SITE MAINTENANCE AND SUPPORT (IWSMS&S)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $14.6 million to CREATIVE INFORMATION TECHNOLOGY, INC. for work described as: INFORMATIONAL WEB-SITE MAINTENANCE AND SUPPORT (IWSMS&S) Key points: 1. Contract value appears reasonable for a multi-year IT support and maintenance agreement. 2. Competition dynamics for this delivery order were not fully detailed, impacting price discovery assessment. 3. Contract duration of nearly four years presents potential for scope creep and cost escalation. 4. Performance context is limited, but the firm fixed-price structure incentivizes cost control. 5. This contract falls within the 'Other Computer Related Services' NAICS code, a broad category. 6. The contract was awarded as a competitive delivery order, suggesting some level of competition. 7. Geographic concentration in Washington D.C. may limit broader economic impact.

Value Assessment

Rating: good

The contract's total value of approximately $14.6 million over nearly four years averages to roughly $3.8 million annually. This figure is within a reasonable range for comprehensive IT website maintenance and support services, especially for a government agency like the Department of State. Without specific details on the scope of services, direct comparisons are challenging, but the annual spend does not immediately suggest overpricing. The firm fixed-price contract type further supports value by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle that allowed for multiple bidders. The presence of 3 bidders suggests a moderate level of competition for this specific order. While 'full-and-open' implies a broad solicitation, the limited number of bidders for this particular delivery order might suggest that the pool of qualified contractors for this specialized service is not extensive, or that other factors limited participation.

Taxpayer Impact: A competitive award, even with a limited number of bidders, generally benefits taxpayers by fostering price negotiation and encouraging contractors to offer competitive terms to secure the work.

Public Impact

The primary beneficiary is the Department of State, which receives essential IT support for its public-facing websites. Services delivered include maintenance, support, and potentially updates for critical web infrastructure. The geographic impact is concentrated in Washington D.C., where the Department of State is headquartered. Workforce implications are likely for the contractor's IT support staff, potentially including specialized web developers and system administrators.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of nearly four years could lead to price increases over time if not managed effectively.
Limited details on specific performance metrics make it difficult to assess the quality of service received.
The 'Other Computer Related Services' NAICS code is very broad, potentially obscuring the specific nature of the IT services provided.

Positive Signals

The contract was awarded competitively, suggesting that multiple firms vied for the opportunity.
A firm fixed-price contract structure incentivizes the contractor to manage costs efficiently.
The contract has a defined end date, providing a clear timeframe for service delivery.

Sector Analysis

This contract falls under the broad 'Other Computer Related Services' category (NAICS 541519), which encompasses a wide range of IT support and consulting. The market for IT services, particularly government IT support, is substantial and highly competitive. Many firms specialize in providing web maintenance, support, and development for federal agencies. Benchmarking this contract's value against similar IT support contracts for federal agencies would require a more granular understanding of the specific services rendered, but the annual spend appears aligned with typical IT service contracts of this nature.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, and the contractor, Creative Information Technology, Inc., is not explicitly identified as a small business in the provided data. Therefore, direct subcontracting opportunities for small businesses under this award are not guaranteed. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks small business partners for specialized services, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of State IT Modernization Efforts
Federal Civilian Agency IT Support Contracts
Government Website Development and Maintenance
Information Technology Professional Services

Risk Flags

Contract Duration Risk
Technology Obsolescence
Limited Performance Data
Broad NAICS Code Obscurity

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.6 million to CREATIVE INFORMATION TECHNOLOGY, INC.. INFORMATIONAL WEB-SITE MAINTENANCE AND SUPPORT (IWSMS&S)

Who is the contractor on this award?

The obligated recipient is CREATIVE INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2009-09-30. End: 2013-06-30.

What specific IT services are included under 'INFORMATIONAL WEB-SITE MAINTENANCE AND SUPPORT (IWSMS&S)'?

The provided data offers limited detail on the specific services encompassed by the 'INFORMATIONAL WEB-SITE MAINTENANCE AND SUPPORT (IWSMS&S)' contract. Typically, such contracts involve a range of activities crucial for maintaining the functionality, security, and usability of government websites. These can include routine system monitoring, software updates and patching, cybersecurity vulnerability assessments and remediation, content management system (CMS) support, database administration, performance optimization, troubleshooting and bug fixing, disaster recovery planning, and potentially user support. The broad NAICS code (541519) suggests a comprehensive IT support role rather than a highly specialized niche.

How does the $14.6 million contract value compare to similar IT support contracts for federal agencies?

Comparing the $14.6 million contract value requires context regarding the scope and duration. Over its nearly four-year term (1369 days), the average annual spend is approximately $3.8 million. This figure is moderate for IT support services provided to a large federal agency like the Department of State. Many federal IT support contracts can range from hundreds of thousands to tens of millions of dollars annually, depending on the complexity of systems, number of users, and breadth of services. For instance, contracts for enterprise-wide IT infrastructure management or large-scale software development can significantly exceed this amount. Conversely, smaller, more focused support tasks might be valued lower. Without specific service level agreements (SLAs) and detailed deliverables, a precise benchmark is difficult, but the annual average appears within a plausible range for comprehensive website support.

What are the potential risks associated with a nearly four-year contract for website maintenance?

A contract duration of nearly four years for website maintenance presents several potential risks. Firstly, technology evolves rapidly; by the end of the contract, the systems and platforms supported may be outdated, requiring significant reinvestment or re-competition. Secondly, there's a risk of 'vendor lock-in,' where the agency becomes overly reliant on the incumbent contractor, making it difficult to transition services or negotiate favorable terms in the future. Thirdly, scope creep is a common issue in long-term IT contracts; requirements may expand beyond the original intent, leading to cost overruns if not carefully managed. Finally, maintaining consistent service quality and contractor performance over an extended period can be challenging, requiring diligent oversight from the agency.

What is the significance of Creative Information Technology, Inc. being awarded this contract?

The award of this $14.6 million contract to Creative Information Technology, Inc. signifies a significant business opportunity for the company, representing a substantial revenue stream over its duration. It also indicates that the Department of State assessed Creative Information Technology, Inc. as capable of meeting the technical and performance requirements for maintaining its informational websites. For the company, this contract serves as a key federal contract, potentially enhancing its reputation and its ability to secure future government work. The fact that it was awarded competitively suggests the company successfully demonstrated its value proposition against other bidders.

How does the 'full-and-open' competition for this delivery order impact taxpayer value?

The 'full-and-open' competition designation for this delivery order suggests that the Department of State solicited proposals from a wide range of potential offerors, adhering to principles of broad accessibility and fairness. This approach is generally beneficial for taxpayer value because it maximizes the pool of potential suppliers, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. Even though only 3 bidders participated in this specific delivery order, the initial broad solicitation process creates pressure on all potential bidders to offer their best terms. This competitive environment helps ensure that the government secures services at a fair market price, preventing potential overpayment that might occur with less competitive or sole-source awards.

What are the implications of the contract being a 'FIRM FIXED PRICE' type?

A 'FIRM FIXED PRICE' (FFP) contract type is significant because it places the primary responsibility for cost control on the contractor, Creative Information Technology, Inc. Under an FFP agreement, the contractor is obligated to perform the specified work for a predetermined price, regardless of their actual costs incurred. This means that if the contractor's expenses are higher than anticipated, their profit margin will decrease; conversely, if they manage costs effectively, their profit will increase. For the Department of State, this structure provides cost certainty and predictability, minimizing the risk of unexpected cost overruns. It incentivizes the contractor to be efficient and manage resources wisely to maximize their profit, which can indirectly benefit taxpayers through potentially lower overall costs compared to cost-reimbursement contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12709 GREENBRIAR ROAD, POTOMAC, MD, 08

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $14,558,539

Exercised Options: $14,558,539

Current Obligation: $14,558,539

Parent Contract

Parent Award PIID: SAQMPD07D0090

IDV Type: IDC

Timeline